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Chilean National Economic Prosecutor’s Office (FNE) presented arguments today in front of the Competition Tribunal regarding collusion in the forest fire-fighting airplanes market

25 / 11 / 2020


Represented by the Head of the Litigation Division, Victor Santelices, the FNE presented its arguments today in front of the Competition Tribunal (TDLC) against Faasa Chile Servicio Aéreos Limitada (Faasa) and Martínez Ridao Chile Limitada (Martínez Ridao), two airplane companies operating in the forest fire-fighting market. The FNE indicted the firms for collusion charges.

The coordination would have occurred from 2009 to 2015. In the hearing, Mr. Santelices indicated that the colluded firms agreed on commercial terms, prices, and public and private tenders’ participation. The FNE accused a single and continuous infringement, comprising several contracts with private forestry companies and CONAF, the National Forest Corporation.

The FNE presented several documents and emails as evidence of effective coordination between the defendants, including analyses of the existence of market power, since almost every contract awarded during the period went to either Faasa or Martínez Ridao.

Mr. Santelices asked the Tribunal to impose fines of USD 2.4 million to Faasa Chile and USD 3.2 million to Martínez Ridao Chile. Such sanctions are based on the length of collusion, the severity of the conduct, the importance of the market affected by the coordination, and the expected deterrence of similar cases taking place in the future.

The case was initiated by an ex officio investigation that considered press reports that mentioned cartel coordination between the same defendants in Spain.